List of Top Stock Exchanges in the World @Mint2Save
- 9 June 2020 | 58 Views
Stock Exchanges are an integral part of the capital market, where trading is done systematically. They are a secure trading place where securities are bought and sold. They are also known as securities exchange or bourse as here the stockbrokers and traders can trade in securities, i.e. they can sell and buy securities like shares of stock and bonds and other financial instruments. A stock exchange is generally an essential component of a stock market because security can only be traded if it is listed on the stock exchange and follows the SEBI guidelines.
Now the critical question is that what is SEBI?
On April 12, 1992, SEBI was found under the SEBI Act, 1992. It is headquartered in Mumbai and has regional offices in New Delhi, Chennai, Kolkata, and many other states.
This regulatory body regulates the Indian stock markets and its listed stocks. It monitors the securities market and protects the interests of the investors by enforcing specific rules and regulations on the stock exchanges.
The main objective of the SEBI is to ensure the smooth and systematic working of the Indian stock market and provide transparency to the investors regarding the investments done by them. It helps in preventing any malpractices and helps in the growth of the capital market.
Features of a stock exchange-
- It is a place where trading is done. The trading is of the securities of government, corporate companies, semi-government companies.
- Trading is done by the broker, or exchange member does the trading on behalf of the company and the company itself doesn’t indulge in trading.
- Stock exchange deals in the second-hand securities. This means that it deals in the protection, shares and bonds that are once sold by the company.
- Only the securities that are listed and recorded in the stock exchange office are the ones that can be traded on a stock exchange.
- The central government must recognize the stock exchange on which the dealing is done.
- Brokers and members that are authorized by the central government can only do the transactions for the securities.
- All the transactions take place as per the rules and regulations of the SEBI, i.e. securities exchange board of India. This means that all the dealings in securities take place as per SEBI guidelines.
Functions of the stock exchange-
- Helps in raising capital for the company be it authorized capital or additional capital.
- It helps in determining the price of the security with the help of demand and supply.
- Helps in promoting business by mobilizing the saving of people in investments. With this, the habit of saving and investing is inculcated among the general public.
- By disinvesting and then reinvesting in the most productive investment proposal, it promotes the growth of the economy.
- Through the stock exchange, the investor can easily convert their investment into cash, thus promoting liquidity.
What is the most expensive stock? OR
What is the highest priced stock in the world?
Berkshire Hathaway-A or BRK-A is the most expensive stock in the world. It trades at a price which is 1500 times more than that of its counterpart BRK-B. The same is due to the differential voting rights. BRK-A is fortunate enough to have that features, while BRK-B does not.
What are the best type of stocks to invest in? What are the best stocks to buy for beginners?
The best type of stocks to invest are dividend-paying established companies, which usually form a significant portion of the Blue-Chip stocks. What is a Blue Chip Stock? Irrespective of one’s experience and know-how about stock markets, making money via these stocks is relatively easier compared to others.
What are the Biggest Stock Exchanges?
1. New York Stock Exchange-
The New York Stock Exchange is a bourse that was detected in New York. It is the world’s largest stock exchange because of the volume of market capitalization.
It helps the buyers and sellers to buy and sell the shares of companies registered for public trading and allows the trading from Monday to Friday from 9:30 am – 4:00 pm according to Easter Time Zone.
In 2007, the NYSE merged with Euronext and began trading approximately 10 billion shares per day. The NYSE united with five main European bourses. These European bourses are Paris Bourse, Amsterdam bourse, the London International Financial Exchange, Brussels bourse, and Lisbon bourse, and in 2008 the NYSE took possession of the American Stock securities.
The Nasdaq Stock Market is ranked second on the list of stock exchanges based on the volume of market capitalization it trades in. This stock exchange is located at One Liberty Plaza in New York City.
It enabled buyers and sellers to trade in securities electronically. It was established to provide the investor with a computerized model of trading which will be a speedy and transparent system and is thus the world’s first electronically traded stock market.
Nasdaq was constructed and nurtured by the National Association of Securities Dealers i.e. NASD. The stock exchange of NASDAQ consists of more than 3,000 companies listed under it. Some of the prominent companies that are listed under it are Apple and Microsoft. Along with this many, more companies are listed like Facebook, Intel, and Google.
3. Tokyo Stock Exchange-
This stock exchange is also known as Tosho and is a third-largest stock exchange in the world after NASDAQ. TSE is in Tokyo, Japan.
On May 15, 1878, the Tokyo Stock Exchange was discovered. The leading TSE indices are the Nikkei 225 index. It has around 2,300 listed companies with a market capitalization of US$5.67 trillion till 2019.
On January 1, 2013, the Japan Exchange Group was established due to the merger Tokyo Stock Exchange and Osaka Securities Exchange in July 2012. It got its approval from the Japan Fair Trade Commission.
4. Shanghai Stock Exchange–
The Shanghai Stock Exchange is a stock exchange in the city of Shanghai, China. It is one of the stock exchanges in China along with the Shenzhen Stock Exchange. It was found in 1866 but was re-established on 26th November 1990.
SSE is the world’s fourth-largest stock exchange after the Tokyo Stock Exchange with the market capitalization of around and approximately US$ 5.01 trillion.
The market capital of the SSE is obtained formerly from state-run insurance companies and commercial banks. SSE deals in securities of three main types, i.e. stocks, bonds, and funds. Bonds that are traded include treasury bonds, corporate bonds, and convertible corporate bonds. Shanghai Composite Index is the most used indicator to reflect SSE’s performance in the market.
5. Honk Kong Stock Exchange-
It is the world’s fifth-largest stock exchange after the Shanghai Stock Exchange because of market capitalization. It is situated in Honk Kong and has around 2,315 companies listed on it.
The Honk Kong stock exchange was found in 1866 but formally set up in 1891. After this, the stock exchange has gone under several mergers with many other exchanges.
The companies that are listed on this stock exchange are China Mobile and Petro China. Along with these, there is also HSBC Holdings. It has the capital of about HK$29.9 trillion in the free market economy.
6. London Stock Exchange-
The one ranked as the sixth-largest stock exchange in the world based on market occupied by the oldest stock exchange in the world and in London. It was established in 1571 and has more than 3000 companies listed on it.
The market capitalization of this exchange is around $4.59 trillion. It’s currently situated in Paternoster Square in the City of London. The securities traded on London Stock Exchange are- Common stock, Bonds, Derivatives and Debt securities.
EURONEXT stands for European New Exchange Technology is a European stock exchange and has registered office in Amsterdam. This stock exchange prevailed since 2000 under the rules and regulations of various exchanges like Amsterdam, Brussels, and Paris.
It has around 1,500 listed companies and market capitalization worth roughly about €4.1 trillion. It has gone several mergers, especially with New York Stock Exchange. EURONEXT deals in various securities like equities and warrants, exchange-traded and bonds, and many more.
8. Shenzen Stock Exchange-
After EURONEXT it is designated as a huge bourse ranking on eight. It was found on December 1, 1990, and is situated in the Futian district of Shenzhen. It has a market capitalization of approximately $3.92 trillion and has around 1,300 companies listed on it.
The companies listed on SZSE are China International Marine Containers (Group), Shenzhen Textile, China Greatwall Technology Group, and many more.
9. Toronto Stock Exchange-
TSX is situated in Toronto, Canada, and was introduced in 1852. It is positioned as the ninth-largest stock exchange across the world and has round around 2,300 listed companies.
It is a subsidiary stock exchange of the TMX Group. The Toronto Stock Exchange has more of mining and oil and gas companies listed on it in comparison to other stock exchanges all over the world.
Some of the listed companies are Enbridge, Suncor, TC Energy, Canadian Natural Resources, Imperial Oil, and many more.
10. Bombay Stock Exchange-
Bombay Stock Exchange or the BSE and is located at Dalal Street, Mumbai. It is one of the oldest stock exchange and was Established in 1875.
Which is the biggest stock exchange in Asia? It is indeed, the BSE. The BSE has great market capitalization because it is amongst the oldest exchange. As the name suggests, it is an Indian stock exchange and the first-ever stock exchange of Asia. The BSE has roughly 5,000 to 5100 companies listed on it. Sensex is used to measure BSE’s benchmark. BSE comprises of various securities like stocks, futures, options and index futures.
With the ever-increasing technology and with the developments taking place we can say that the trading has evolved and given space to electronic trade. Every stock exchange is governed by the rule and regulations of the governing body.
Amongst the 10 largest bourses there is Bombay Stock Exchange of India which follows the rules of SEBI.
Stock exchanges provide transparency to customers thus helping and motivating them to save and invest more and more.